Something about insurance

The insurer - this is a legal entity of any organizational-legal form created for the insurance business and has obtained a license for it. The insurer is one of the two main subjects of the insurance contract. The insurer sells for a price of insurance services to clients. To this end, contributions from the insurance fund is formed, is used to compensate for damage to insured property interests of the insured.

Insurer - this is a legal or natural person capable, has entered into a contract of insurance or is insured by operation of law (in the form of mandatory insurance) and payment of insurance premiums. The insured may enter into contracts of insurance or other persons in favor of third parties. Insured is the second main subject of the insurance contract, he buys insurance from the insurer for the price of the premium.

Insured person - an individual whose life, health and working capacity are subject to insurance coverage for personal insurance. An insured person may be both the insured, if he signed a contract of insurance in respect of itself and the insurer pays the fees. If, for example, an employer has an appropriate agreement and paid contributions to social funds for their employees, then employees will be insured and the insurer - the employer. An insured person is a secondary subject of the insurance contract.

Beneficiary - legal or natural person are designated by the insured in a contract or a legal beneficiary of the sum insured (for example, in the event of injury to the insured property - in the property insurance or the death of the insured - in the personal insurance). Beneficiary is a secondary subject of the insurance contract.

The subject of insurance - insured tangible and intangible assets: property, life, health, earning capacity, liable to damage the environment.

Property interest - the notion of having two semantic values. First, the property interest is linked to the presence of the policyholder insurance (property, life, health, wealth), the insurance protection it would provide, ie, the property interest is a specific form of awareness of the need for insurance. Secondly, the property interest is defined as the sum, which is estimated damage from the loss of or damage to property. This amount and the related interest in ownership of property.

The object of insurance. The objects of insurance may be the property interests involved:

First, the life, health, disability and pension policyholder or the insured (private insurance);
secondly, to the possession, use and disposal of assets (property insurance);
and thirdly, with reimbursement from the insured for injury caused to his person or property of third parties (liability insurance).

The interest of legal persons and States in the property insurance, life, health, on the one hand, and a real opportunity to address this need by insurance companies - on the other hand, express the meaning «insurance protection». For this reason, insurance protection can be defined as a set of relations on the redistribution of damage to the property interests of the affected policyholders, among all the customers of insurance companies through an insurance fund established by contributions from insurers for policyholders.

Insurance liability - duty of the insurer to make payment of the insurance policyholder in the aftermath of the insured event occurred. The insurance contract always includes a list of insurance events, in case of attack by the insurance. This list represents the amount of liability insurance (coverage) the insurer, with more than he was, the more expensive insurance.

Insurance is a system of social relations, which is influenced by many different factors. A large number of insurance, the extreme diversity of risks in the event of under insurance, the differences in the organization of the insurance process, the use of practical activities and development of the insurance law, insurance, statistics, actuarial, insurance economy led to the formation of a specific insurance terminology. It is worth mentioning some of the complexity of conceptual apparatus of the insurance. This is due, firstly, that the same term often has a number of semantic aspects, and secondly, some terms are not yet firm, is often interpreted in different ways.

To facilitate the perception of basic insurance terms divide into four groups of conditional (conditional, because some terms can not be attributed to a particular group due to their polysemy):

• terms, reflecting the general terms and conditions of insurance transactions;
• terms relating to the formation of the insurance fund;
• terms relating to the expenditure of the insurance fund;
• terms relating to the functioning of the insurance market.

Mandatory insurance is based on the following principles.
1. The principle of obligation (automaticity) is that insurance is compulsory by law. Relevant regulations define a list of items to be insured, the list of events in the event of which the insurance, the size of insurance premiums and the frequency of its payment, the size of compensation payable, the rights and obligations of the insured and the insurer.
2. The principle of complete coverage of compulsory insurance. The essence of this principle is that insurers, which by law is responsible for insurance, must provide 100% coverage of the facilities. To do this, they hold annual inventory and registration of the insured, insurers charge in a timely insurance payments.
3. The principle of mandatory insurance coverage, regardless of the payment of insurance premiums. If the insurer has not made insurance payments, and its respective property interests caused the damage, the insurer will pay him compensation, withheld insurance premiums. In some cases, contributions may be recovered through the courts.
4. Indefinite mandatory insurance is that insurance coverage will be insured until the policyholder would be a property interest subject to compulsory insurance, or until it is repealed the law.
5. The principle of normalization liability insurer does not allow to take into account the individual characteristics of insurance and determine the appropriate standards organization to simplify the insurance process.
In the compulsory personal insurance citizens listed principles appear with some specificity. For example, the compulsory insurance of passengers clearly defined period of insurance, and implementation of insurance depends entirely on the payment of the premium.
The Treaty of voluntary insurance, as opposed to compulsory insurance, is only at the request of the policyholder. Regulatory framework in this case is the insurance legislation. The basis of voluntary insurance are the following principles.
1. The principle of voluntarism is that the policyholder enters into a contract of insurance on their own volition and not because of legal coercion. In doing so, it only insures that finds it necessary and so, for how many allow their financial capacity.
2. The principle of incomplete coverage of individuals and entities associated with the voluntary insurance that not everyone wants to insure, and have the means to do so. In turn, insurers have certain limitations when applying for insurance of various objects. So, not being insurance against accidents in disability group I, not insured buildings in dilapidated condition, etc.
3. The principle limitations of voluntary insurance to date is that the Agreement is terminated upon the expiration of the insurance or if at the time of the contract has an insurance case, in the aftermath of which the insurance amount was paid in full. Continuity of insurance coverage can be achieved only in time to conclude an agreement on a new date.
4. The principle according to the insurance protection against payment of the premium. The insurance contract comes into effect only after the payment or the first single (with contributions by installments) payments. Accordingly, if non-payment of installment, the Agreement is terminated.
5. The principle of insurance coverage depending on the willingness and ability to pay policyholder. And in the property and personal insurance, the insurance amount depends on the capacity and willingness of the insured. In property insurance insurance amount can not exceed the actual (taking into account depreciation) value of the insurance.